Different Mode M & Empirical Analysis

With the rapid development of global economy and market competition, many enterprises have faced merger and acquisition(M&A), which will change the industry structure and affect the behavior of society,enterprises and consumers. Form the point of microcosmic view. M&A can realize capital increment, optimize capital structure and promote rationalization of industrial structure; Form the point of macroscopic view. M&A is beneficent to raise economic effects of total society and make superior resource allocation. In addition, M&A may active original resource of slow efficiency.Economic theories and management theories have had some study on this field, this paper fousing on Chinese listing company to research their economic efficiency. At first, this text introduces common theory of mergence simply. In economics conception, M&A is take-over of property resulting in the transfer of the assets ownership from the target companies to the acquiring one. Secondly from various angels of enterprises' achievements. It analyzes motivation of mergence. At the basis of this interpret , the text makes a thorough study of economic efficiency of three types of mergence. ( such as Horizontal Merger. Vertical Merger and Conglomerate Merger). In macro level. The rationality of M&A and its products lies in scale economics and also lies in reducing relevant costs & diversifying operation risk, etc. In the light of case analyses. The paper makes an empirical study on M&A performance of listed companies so as to evaluate the performance in an objective manner and to find out successful models in M&A. At last, because every thing has two aspects, we should be on guard against negative effect of mergence.